James W. Giddens, Trustee for the liquidation of MF Global Inc. (MFGI), is commencing the process of sending out $551 million in distributions to general creditors who have made allowable claims against the MFGI estate.
The Trustee is proposing to distribute $295 million to holders of secured, administrative, priority and unsecured general claims. The Trustee is also seeking to establish a reserve of $462 million on account of unresolved claims
The CCC was founded by Koutoulas and John Roe shortly after MF Global declared bankruptcy when it became apparent that there was a lack of urgency inside and outside the industry to protect the sanctity of customer segregated funds.
A group of MF Global Holdings Ltd. creditors proposed a liquidation plan that would pay as much as 41.5 cents on the dollar for unsecured claims after the company reached key settlements last month with affiliates.
A broad agreement among the various entities administrating the MF Global bankruptcy was announced Saturday morning that resolves existing claims among the competing interests and will expedite additional distributions to former MF Global customers and claimants